Late last week, the Commissioner of Insurance for the state of Louisiana, James Donelon, issued a directive clarifying a prohibition on charging consumers fees for enrollment assistance with individual health insurance plans.

According to Donelon, there have been instances of producers charging fees directly to consumers purchasing individual health insurance policies which is in direct violation of Louisiana state law.

The law only allows fees for assistance with group health plans in order to compensate producers for services related to rendering the group contract.

Producers are expected to immediately bring their business practice into compliance with the state law.